Capital One Bank Releases Results of Its National Quarterly Small Business Barometer Survey
MCLEAN, Va., Aug 25, 2011 (BUSINESS WIRE) --
Capital One Small Business today released the results of its Small Business Barometer survey for the second quarter of 2011. The quarterly survey polls small businesses across the nation, gauging their current financial condition and business projections for the next six months. Survey results from Capital One's survey for the second quarter, suggests that many U.S. small businesses are experiencing gradual, but continued improvement in financial performance. The small business leaders surveyed also report growing confidence in the economic environment, which appears to be contributing positively to hiring and investment decisions for their business in the near term.
"Our second quarter survey results suggest that many small businesses are seeing sustained improvement in business performance. This is a trend we've seen developing over the last few quarters and, while the pace has been modest, it has been generally consistent and that's definitely something we like to see," said Peter Appello, Executive Vice President of Small Business Banking at Capital One Bank. "While there continues to be a level of caution as businesses think about expenditures, we are seeing a small but healthy uptick this quarter in the percentage of small businesses planning to hire and increase spending on business development and investments over the next six months. Although most of those businesses planning to hire will keep expansion modest, these results are encouraging for the second half of the year."
In the second quarter, an increased percentage of small businesses from across the country reported plans to hire additional employees over the next six months. Plans for expanding the payroll, however, are modest.
Economic Outlook, Financial Performance and Spending
The survey results for the second quarter of 2011 suggest that small businesses continue to experience improving business performance and remain relatively optimistic about economic conditions, particularly as concerns about rising fuel costs have eased relative to the first quarter of this year. With an improved business outlook, a higher percentage of the small businesses surveyed are planning to increase spending on business development and investments in the near term.
Availability of Financing
The survey results suggest that the availability of credit and financing for small businesses continues to grow and fulfilling capital needs is becoming less of a concern for small businesses.
The findings reported in this release are from a telephone survey conducted by the opinion research firm, Braun Research of Princeton, NJ. Braun Research interviewed a nationally-representative sample of 1,904 for-profit small businesses in the U.S., weighted to Dunn and Bradstreet counts of all businesses nationwide by employee size and geography. Samples were also taken in New York, New Jersey, Louisiana, Texas and the Washington, D.C. metropolitan area. Small businesses are defined as those with less than $10 million in annual revenue. The interviews were conducted from June 13-July 1, 2011. All interviews were conducted by telephone at their places of business. One respondent per business was contacted. The margin of error is ± 2.3 percentage points at the 95 percent confidence level. Interviews were monitored at random. Sampling for this study was conducted using a national sample of businesses drawn from InfoUSA. All interviews were conducted using a computer assisted telephone interviewing system. Statistical weights were designed from the United States Department of Commerce to ensure proper inclusion of all SIC codes.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N.A., had $126.1 billion in deposits and $199.8 billion in total assets outstanding as of June 30, 2011. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
SOURCE: Capital One Financial Corporation